The latest findings from a QuickBooks Payroll survey of over 1,000 small business owners found that 86% of small business owners take on at least one financial activity for their business, including processing employee payroll and calculating payroll taxes because they say they’re the best people to manage their finances with the best level of accuracy. But it turns out there’s more to their determination and confidence than meets the eye.
Here’s what the survey found:
63% didn’t know how time-consuming payroll taxes could be
Each pay period, business owners spend 4 hours and 52 minutes calculating, filing, and paying payroll taxes. That’s 21 days a year. 63% admit they never realized how much time they had to spend on payroll taxes. 65% wish they could outsource payroll completely.
Payroll taxes are tough from all angles
Business owners know this well. 79% find it hard to stay on top of payroll tax laws. And 7 in 10 say varying labor laws across cities and states make things harder.
1 in 4 businesses surveyed has come under the scrutiny of the IRS. Among these, 15% were audited, and 17% were fined. 40% of businesses with more than 10 employees were audited or fined. Only 14% of businesses with 10 or fewer employees said the same.
The right help can mean professional and personal wins
72% have experienced the benefits of automated payroll software for themselves. Among these, a combined 73% credit their software for improving cash flow by maximizing deductions and keeping money in the business.
Instead of calculating, filing, and paying payroll tax each pay period, business owners would rather:
- Spend time with family and friends
- Improve product or service offerings
- Spend time with customers
- Network
- Train their employees
Business owners who do payroll themselves describe the process as frustrating (49%), complicated (47%), and confusing (44%). 1 in 3 says they’re not comfortable with the payroll process at all.
Those who’ve had a positive experience using automated software or outsourcing payroll are more ready to hand off these tasks to the professionals. 81% of those confident about the upcoming tax season use software to process employee payroll and calculate and file payroll taxes. Clearly, the right help can go a long way.
See the full survey results in the original article.
This article was produced by the QuickBooks Resource Center and syndicated by MediaFeed.org.
Featured Image Credit: iStock/monkeybusinessimages.
